Funds from Operations (FFO) for the quarter ended December 31, 2012 were
$192.5 million, or $1.27 per share basic and $1.27 per share diluted.
This compares to FFO for the quarter ended December 31, 2011 of $179.3
million, or $1.21 per share basic and $1.21 per share diluted. The
weighted average number of basic and diluted shares outstanding totaled
151,005,547 and 152,708,254, respectively, for the quarter ended
December 31, 2012 and 147,732,138 and 149,435,490, respectively, for the
quarter ended December 31, 2011.

The Company’s reported FFO of $1.27 per share diluted exceeded the
guidance previously provided of $1.22-$1.24 per share. The Company’s
reported FFO included the following items, among others, that were not
reflected in the guidance: $0.02 per share of improvements in portfolio
operations, $0.01 per share of greater than expected interest and other
income and development and management services revenue, and $0.01 per
share of less than expected general and administrative expenses.

Net income available to common shareholders was $65.4 million for the
quarter ended December 31, 2012, compared to $101.6 million for the
quarter ended December 31, 2011. Net income available to common
shareholders per share (EPS) for the quarter ended December 31, 2012 was
$0.43 basic and $0.43 on a diluted basis. This compares to EPS for the
fourth quarter of 2011 of $0.69 basic and $0.69 on a diluted basis.

Results for the year ended December 31, 2012

FFO for the year ended December 31, 2012 was $741.4 million, or $4.94
per share basic and $4.90 per share diluted. This compares to FFO for
the year ended December 31, 2011 of $711.0 million, or $4.88 per share
basic and $4.84 per share diluted. The weighted average number of basic
and diluted shares outstanding totaled 150,119,947 and 152,055,620,
respectively, for the year ended December 31, 2012 and 145,693,488 and
147,679,439, respectively, for the year ended December 31, 2011.

Net income available to common shareholders was $289.7 million for the
year ended December 31, 2012, compared to $272.7 million for the year
ended December 31, 2011. Net income available to common shareholders per
share (EPS) for the year ended December 31, 2012 was $1.93 basic and
$1.92 on a diluted basis. This compares to EPS for the year ended
December 31, 2011 of $1.87 basic and $1.86 on a diluted basis.

The reported results are unaudited and there can be no assurance that
the results will not vary from the final information for the quarter and
year ended December 31, 2012. In the opinion of management, all
adjustments considered necessary for a fair presentation of these
reported results have been made.

As of December 31, 2012, the Company’s portfolio consisted of 157
properties, comprised primarily of Class A office space, one hotel,
three residential properties and four retail properties, aggregating
approximately 44.4 million square feet, including nine properties under
construction totaling 2.8 million square feet. In addition, the Company
has structured parking for vehicles containing approximately 15.9
million square feet. The overall percentage of leased space for the 145
properties in service (excluding the two in-service residential
properties and the hotel) as of December 31, 2012 was 91.4%.

Significant events during the fourth quarter included:

On October 1, 2012, a joint venture in which the Company has a 30%
interest partially placed in-service 500 North Capitol Street, NW, a
Class A office redevelopment project with approximately 232,000 net
rentable square feet located in Washington, DC. The property is
currently 82% leased.

On October 4, 2012, the Company completed the formation of a joint
venture which owns and operates Fountain Square located in Reston,
Virginia, adjacent to the Company’s other Reston properties. Fountain
Square is an office and retail complex aggregating approximately
758,000 net rentable square feet, comprised of approximately 521,000
net rentable square feet of Class A office space and approximately
237,000 net rentable square feet of retail space. The joint venture
partner contributed the property valued at approximately $385.0
million and related mortgage indebtedness totaling approximately
$211.3 million for a 50% interest in the joint venture. The Company
contributed cash totaling approximately $87.0 million for its 50%
interest, which cash was distributed to the joint venture partner. The
Company is consolidating this joint venture. The mortgage loan bears
interest at a fixed rate of 5.71% per annum and matures on October 11,
2016. Pursuant to the joint venture agreement (i) the Company has
rights to acquire the partner’s 50% interest and (ii) the partner has
the right to cause the Company to acquire the partner’s interest on
January 4, 2016, in each case at a fixed price totaling approximately
$102.0 million in cash. The fixed price option rights expire on
January 31, 2016.

On October 19, 2012, the Company formed a joint venture with an
affiliate of Hines to pursue the acquisition of land in San Francisco,
California which could support a 61-story, 1.4 million square foot
office tower known as Transbay Tower. The purchase price is
approximately $190.0 million, and the acquisition is expected to close
in the first quarter of 2013. The Company has a 50% interest in the
joint venture. The Company has provided a non-refundable deposit for
the land purchase in the form of a letter of credit totaling $5.0
million. There can be no assurance that the acquisition of the land
will be consummated on the terms currently contemplated or at all.

On November 8, 2012, the Company declared a dividend of $0.65 per
share of common stock for the period from October 1, 2012 to December
31, 2012, payable on January 29, 2013 to shareholders of record as of
the close of business on December 31, 2012. This represents an
increase of approximately 18% over the prior quarterly cash dividend
of $0.55 per share.

On November 20, 2012, the Company’s partner in its Annapolis Junction
joint venture contributed a parcel of land and improvements and the
Company contributed cash of approximately $5.4 million. The Company
has a 50% interest in this joint venture. The venture has commenced
construction of Annapolis Junction Building Seven, which when
completed will consist of a Class A office property with approximately
125,000 net rentable square feet located in Annapolis, Maryland.

On December 14, 2012, the Company signed a 20-year lease with a law
firm for approximately 246,000 net rentable square feet at 250 West
55th Street. 250 West 55th Street is an approximately 989,000 net
rentable square foot office building under construction in midtown
Manhattan. The Company expects that the law firm will move into the
completed building in the second quarter of 2014. The property is
currently approximately 46% leased.

On December 18, 2012, the Company terminated the construction loan
facility collateralized by its 680 Folsom Street development project
located in San Francisco, California totaling $170.0 million. The
construction loan facility bore interest at a variable rate equal to
LIBOR plus 3.70% per annum and was scheduled to mature on May 30, 2015
with two, one-year extension options, subject to certain conditions.
The Company had not drawn any amounts under the facility.

On December 21, 2012, the Company signed a 20-year lease with a law
firm for approximately 376,000 net rentable square feet at 601
Massachusetts Avenue, the Company’s planned approximately 478,000 net
rentable square foot development project located in Washington, DC.
Construction of the project is scheduled to commence in the second
quarter of 2013, and the law firm expects to move into the completed
building in the fourth quarter of 2015. The property is currently
approximately 79% leased.

The servicer of the non-recourse mortgage loan in the amount of $25.0
million collateralized by the Company’s Montvale Center property
located in Gaithersburg, Maryland foreclosed on the property on
January 31, 2012. As a result of the foreclosure, the Company
recognized a gain on forgiveness of debt during the first quarter of
2012 totaling approximately $15.8 million, net of noncontrolling
interests’ share of approximately $2.0 million. Due to a procedural
error of the trustee, the foreclosure sale was subsequently dismissed
by the applicable court prior to ratification. As a result, the
Company has revised its financial statements to reflect the property
and related mortgage debt on its consolidated balance sheet at
December 31, 2012 and has reversed the gain on forgiveness of debt and
recognized the operating activity from the property within its
consolidated statement of operations for the year ended December 31,
2012. A subsequent foreclosure sale occurred on December 21, 2012, and
ratification by the applicable court is pending. Once ratified, the
Company will recognize a gain on forgiveness of debt. These events
have no impact on the cash flows of the Company.

Transactions completed subsequent to December 31, 2012:

On January 7, 2013, the Company signed a 20-year lease with the
General Services Administration for 100% of its approximately 182,000
net rentable square foot currently vacant Three Patriots Park property
located in Reston, Virginia.

On January 28, 2013, the Company’s Compensation Committee approved a
new equity-based, multi-year, long-term incentive program (the “2013
MYLTIP”) in lieu of a 2013 Outperformance Plan as a performance-based
component of the Company’s overall compensation program. The Company
currently expects that under the Financial Accounting Standards
Board’s Accounting Standards Codification (“ASC”) 718 “Compensation –
Stock Compensation,” the 2013 MYLTIP will have an aggregate value of
approximately $8.1 million, which amount will generally be amortized
into earnings over the five-year plan period under the graded vesting
method and has been reflected in the 2013 guidance below.

EPS and FFO per Share Guidance:

The Company’s guidance for the first quarter and full year 2013 for EPS
(diluted) and FFO per share (diluted) is set forth and reconciled below.
Except as described below, the estimates reflect management’s view of
current and future market conditions, including assumptions with respect
to rental rates, occupancy levels and the earnings impact of the events
referenced in this release and otherwise referenced during the
conference call referred to below. The estimates do not include possible
future gains or losses or the impact on operating results from other
possible future property acquisitions or dispositions, other possible
capital markets activity or possible future impairment charges. EPS
estimates may be subject to fluctuations as a result of several factors,
including changes in the recognition of depreciation and amortization
expense and any gains or losses associated with disposition activity.
The Company is not able to assess at this time the potential impact of
these factors on projected EPS. By definition, FFO does not include real
estate-related depreciation and amortization, impairment losses or gains
or losses associated with disposition activities. There can be no
assurance that the Company’s actual results will not differ materially
from the estimates set forth below.

First Quarter 2013

Full Year 2013

Low

-

High

Low

-

High

Projected EPS (diluted)

$

0.38

-

$

0.40

$

1.90

-

$

2.02

Add:

Projected Company Share of Real Estate Depreciation and
Amortization

0.81

-

0.81

3.25

-

3.25

Less:

Projected Company Share of Gains on Sales of Real Estate

0.00

-

0.00

0.09

-

0.09

Projected FFO per Share (diluted)

$

1.19

-

$

1.21

$

5.06

-

$

5.18

Boston Properties will host a conference call on Wednesday, January 30,
2013 at 10:00 AM Eastern Time, open to the general public, to discuss
the fourth quarter and full year 2012 results, the 2013 projections and
related assumptions, and other related matters that may be of interest
to investors. The number to call for this interactive teleconference is
(877) 706-4503 (Domestic) or (281) 913-8731 (International) and entering
the passcode 87254079. A replay of the conference call will be available
through February 13, 2013, by dialing (855) 859-2056 (Domestic) or (404)
537-3406 (International) and entering the passcode 87254079. There will
also be a live audio webcast of the call which may be accessed on the
Company’s website at www.bostonproperties.com
in the Investor Relations section. Shortly after the call a replay of
the webcast will be available in the Investor Relations section of the
Company’s website and archived for up to twelve months following the
call.

Additionally, a copy of Boston Properties’ fourth quarter 2012
“Supplemental Operating and Financial Data” and this press release are
available in the Investor Relations section of the Company’s website at www.bostonproperties.com.

Boston Properties is a fully integrated, self-administered and
self-managed real estate investment trust that develops, redevelops,
acquires, manages, operates and owns a diverse portfolio of Class A
office space, one hotel, three residential properties and four retail
properties. The Company is one of the largest owners and developers of
Class A office properties in the United States, concentrated in five
markets – Boston, New York, Princeton, San Francisco and Washington, DC.

This press release contains forward-looking statements within the
meaning of the Federal securities laws.You can identify these
statements by our use of the words “assumes,” “believes,” “estimates,”
“expects,” “guidance,” “intends,” “plans,” “projects” and similar
expressions that do not relate to historical matters.You should
exercise caution in interpreting and relying on forward-looking
statements because they involve known and unknown risks, uncertainties
and other factors which are, in some cases, beyond Boston Properties’
control and could materially affect actual results, performance or
achievements.These factors include, without limitation, the
Company’s ability to satisfy the closing conditions to the pending
transactions described above, the ability to enter into new leases or
renew leases on favorable terms, dependence on tenants’ financial
condition, the uncertainties of real estate development, acquisition and
disposition activity, the ability to effectively integrate acquisitions,
the uncertainties of investing in new markets, the costs and
availability of financing, the effectiveness of our interest rate
hedging contracts, the ability of our joint venture partners to satisfy
their obligations, the effects of local, national and international
economic and market conditions (including the impact of the European
sovereign debt issues), the effects of acquisitions, dispositions and
possible impairment charges on our operating results, the impact of
newly adopted accounting principles on the Company’s accounting policies
and on period-to-period comparisons of financial results, regulatory
changes and other risks and uncertainties detailed from time to time in
the Company’s filings with the Securities and Exchange Commission.Boston
Properties does not undertake a duty to update or revise any
forward-looking statement, including its guidance for the first quarter
and full fiscal year 2013, whether as a result of new information,
future events or otherwise.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

December 31,

December 31,

2012

2011

(in thousands, except for share amounts)

(unaudited)

ASSETS

Real estate

$

13,581,454

$

12,303,965

Construction in progress

1,036,780

818,685

Land held for future development

275,094

266,822

Less: accumulated depreciation

(2,934,160

)

(2,642,986

)

Total real estate

11,959,168

10,746,486

Cash and cash equivalents

1,041,978

1,823,208

Cash held in escrows

55,181

40,332

Investments in securities

12,172

9,548

Tenant and other receivables, net of allowance for doubtful accounts
of $1,960 and $1,766, respectively

issued and 151,601,209 and 148,107,611 shares outstanding at
December 31, 2012 and December

31, 2011, respectively

1,516

1,481

Additional paid-in capital

5,222,073

4,936,457

Dividends in excess of earnings

(109,985

)

(53,080

)

Treasury common stock, at cost

(2,722

)

(2,722

)

Accumulated other comprehensive loss

(13,817

)

(16,138

)

Total stockholders' equity attributable to Boston Properties, Inc.

5,097,065

4,865,998

Noncontrolling interests:

Common units of the Operating Partnership

539,753

548,581

Property partnerships

(1,964

)

(1,063

)

Total equity

5,634,854

5,413,516

Total liabilities and equity

$

15,462,321

$

14,782,966

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended

Year ended

December 31,

December 31,

2012

2011

2012

2011

(in thousands, except for per share amounts)

Revenue

Rental

Base rent

$

382,934

$

357,024

$

1,483,533

$

1,401,594

Recoveries from tenants

59,825

51,929

229,107

198,703

Parking and other

22,612

21,217

91,635

83,069

Total rental revenue

465,371

430,170

1,804,275

1,683,366

Hotel revenue

11,691

11,632

37,915

34,529

Development and management services

8,343

8,726

34,077

33,425

Total revenue

485,405

450,528

1,876,267

1,751,320

Expenses

Operating

Rental

169,133

152,994

657,363

590,224

Hotel

8,519

8,076

28,120

26,128

General and administrative

15,940

19,329

82,382

79,610

Transaction costs

401

80

3,653

1,987

Depreciation and amortization

120,550

108,511

453,068

436,612

Total expenses

314,543

288,990

1,224,586

1,134,561

Operating income

170,862

161,538

651,681

616,759

Other income (expense)

Income from unconsolidated joint ventures

6,949

57,712

49,078

85,896

Interest and other income

2,062

1,179

10,091

5,358

Gains (losses) from investments in securities

187

38

1,389

(443

)

Losses from early extinguishments of debt

-

(1,494

)

(4,453

)

(1,494

)

Interest expense

(103,452

)

(103,967

)

(413,564

)

(394,131

)

Income from continuing operations

76,608

115,006

294,222

311,945

Discontinued operations

Income from discontinued operations

-

437

1,040

1,881

Gain on sale of real estate from discontinued operations

-

-

36,877

-

Net income

76,608

115,443

332,139

313,826

Net income attributable to noncontrolling interests

Noncontrolling interests in property partnerships

(2,331

)

(440

)

(3,792

)

(1,558

)

Noncontrolling interest - redeemable preferred units of the Operating

Partnership

(1,057

)

(842

)

(3,497

)

(3,339

)

Noncontrolling interest - common units of the Operating Partnership

(7,820

)

(12,470

)

(31,046

)

(36,035

)

Noncontrolling interest in discontinued operations - common units of
the

Operating Partnership

-

(47

)

(4,154

)

(215

)

Net income attributable to Boston Properties, Inc.

$

65,400

$

101,644

$

289,650

$

272,679

Basic earnings per common share attributable to Boston Properties,
Inc.:

Income from continuing operations

$

0.43

$

0.69

$

1.71

$

1.86

Discontinued operations

-

-

0.22

0.01

Net income

$

0.43

$

0.69

$

1.93

$

1.87

Weighted average number of common shares outstanding

151,006

147,732

150,120

145,693

Diluted earnings per common share attributable to Boston Properties,
Inc.:

Income from continuing operations

$

0.43

$

0.69

$

1.70

$

1.85

Discontinued operations

-

-

0.22

0.01

Net income

$

0.43

$

0.69

$

1.92

$

1.86

Weighted average number of common and common equivalent shares

outstanding

151,401

147,974

150,711

146,218

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended

Year ended

December 31,

December 31,

2012

2011

2012

2011

(in thousands, except for per share amounts)

Net income attributable to Boston Properties, Inc.

$

65,400

$

101,644

$

289,650

$

272,679

Add:

Noncontrolling interest in discontinued operations -

common units of the Operating Partnership

-

47

4,154

215

Noncontrolling interest - common units of the Operating

Partnership

7,820

12,470

31,046

36,035

Noncontrolling interest - redeemable preferred units of

the Operating Partnership

1,057

842

3,497

3,339

Noncontrolling interests in property partnerships

2,331

440

3,792

1,558

Less:

Income from discontinued operations

-

437

1,040

1,881

Gain on sale of real estate from discontinued operations

-

-

36,877

-

Income from continuing operations

76,608

115,006

294,222

311,945

Add:

Real estate depreciation and amortization (2)

142,029

133,415

542,753

541,791

Income from discontinued operations

-

437

1,040

1,881

Less:

Gain on sale of real estate included within income from

unconsolidated joint ventures (3)

-

46,166

248

46,166

Noncontrolling interests in property partnership's share

of funds from operations

2,795

904

5,684

3,412

Noncontrolling interest - redeemable preferred units of

the Operating Partnership

1,057

842

3,497

3,339

Funds from operations (FFO) attributable to the Operating

Partnership

214,785

200,946

828,586

802,700

Less:

Noncontrolling interest - common units of the Operating

Partnership's share of funds from operations

22,323

21,648

87,167

91,709

Funds from operations attributable to Boston Properties, Inc.

$

192,462

$

179,298

$

741,419

$

710,991

Boston Properties, Inc.'s percentage share of funds from

operations - basic

89.61

%

89.23

%

89.48

%

88.57

%

Weighted average shares outstanding - basic

151,006

147,732

150,120

145,693

FFO per share basic

$

1.27

$

1.21

$

4.94

$

4.88

Weighted average shares outstanding - diluted

152,708

149,435

152,056

147,679

FFO per share diluted

$

1.27

$

1.21

$

4.90

$

4.84

(1) Pursuant to the revised definition of Funds from Operations adopted
by the Board of Governors of the National Association of Real Estate
Investment Trusts (“NAREIT”), we calculate Funds from Operations, or
“FFO,” by adjusting net income (loss) attributable to Boston Properties,
Inc. (computed in accordance with GAAP, including non-recurring items)
for gains (or losses) from sales of properties, impairment losses on
depreciable real estate of consolidated real estate, impairment losses
on investments in unconsolidated joint ventures driven by a measurable
decrease in the fair value of depreciable real estate held by the
unconsolidated joint ventures, real estate related depreciation and
amortization, and after adjustment for unconsolidated partnerships and
joint ventures. FFO is a non-GAAP financial measure. The use of FFO,
combined with the required primary GAAP presentations, has been
fundamentally beneficial in improving the understanding of operating
results of REITs among the investing public and making comparisons of
REIT operating results more meaningful. Management generally considers
FFO to be a useful measure for reviewing our comparative operating and
financial performance because, by excluding gains and losses related to
sales of previously depreciated operating real estate assets, impairment
losses and real estate asset depreciation and amortization (which can
vary among owners of identical assets in similar condition based on
historical cost accounting and useful life estimates), FFO can help one
compare the operating performance of a company's real estate between
periods or as compared to different companies.

Our computation of FFO may not be comparable to FFO reported by other
REITs or real estate companies that do not define the term in accordance
with the current NAREIT definition or that interpret the current NAREIT
definition differently.

FFO should not be considered as an alternative to net income
attributable to Boston Properties, Inc. (determined in accordance with
GAAP) as an indication of our performance. FFO does not represent cash
generated from operating activities determined in accordance with GAAP,
and is not a measure of liquidity or an indicator of our ability to make
cash distributions. We believe that to further understand our
performance, FFO should be compared with our reported net income
attributable to Boston Properties, Inc. and considered in addition to
cash flows in accordance with GAAP, as presented in our consolidated
financial statements.

(2) Real estate depreciation and amortization consists of depreciation
and amortization from the Consolidated Statements of Operations of
$120,550, $108,511, $453,068 and $436,612, our share of unconsolidated
joint venture real estate depreciation and amortization of $21,778,
$24,592, $90,076 and $103,970, and depreciation and amortization from
discontinued operations of $0, $670, $976 and $2,572, less
corporate-related depreciation and amortization of $299, $358, $1,367
and $1,363 for the three months and year ended December 31, 2012 and
2011, respectively.

(3) Consists of the portion of income from unconsolidated joint ventures
related to the gain on sale of real estate from (1) the sale of the
Company's Value-Added Fund's 300 Billerica Road property during the year
ended December 31, 2012 and (2) the sale of Two Grand Central Tower
during the three months and year ended December 31, 2011.